Unless you plan on gambling on a summer weather rally, consider taking advantage of current wheat and soybeans prices and sell at least two-thirds sold of your anticipated production, advises George Flaskerud, North Dakota State University extension crops economist.
Consider selling even a higher percentage of soybeans, he suggests.
Corn prices have fundamental and technical reasons to move higher, according to Flaskerud. December futures have fundamental support at prices close to $3 per bushel, although above-average yields could push prices below that at harvest. On the upside, $3.60 December futures are a possibility.
Consider scaling up corn sales so that a high percentage of the crop is sold if $3.60 is reached, he suggests.
One other tip from Flaskerud: Use futures fixed elevator contracts to sell the 2004 corn crop up to the level of production covered by crop revenue insurance. Beyond that level, the use of put options would be preferred since production risk is a concern as well as price risk.
Occasional adjustments to marketing plans will be necessary this year since stocks of all crops are so tight, he notes.
- -- Source: NDSU Extension Communications.